The claim came as fresh questions arose as to how chocolate maker Cadbury came to receive a $16 million pledge from the Coalition before last year's federal election and it was reported that a food lobby group contacted Senator Nash's office to raise concerns about the site the day it was pulled down.

Senator Nash's chief of staff, Alastair Furnival, resigned this month when it was revealed by Fairfax Media that he had retained ownership of a lobbying company in breach of the ministerial staff code of conduct. This followed a decision by the minister's office to take down a healthy food website seen as hostile to the snackfood industry.

Advertisement

Mr Furnival had worked for Cadbury and months earlier had lobbied the Tasmanian government on behalf of the company to secure $400,000 for a visitor centre.

Pictures located by the Seven Network show Mr Furnival was at the Cadbury announcement in August sitting with Mr Abbott and other senior figures.

The pictures suggest Mr Furnival, who went on to hold a key post in the Abbott government with critical responsibility for food policy, was central to Coalition discussions resulting in a promised transfer of taxpayer funds to the company.

Mr Abbott announced the $16 million pledge during the election campaign. He has since refused to say what links he had to Mr Furnival and what role Mr Furnival might have played in brokering the proposed transfer of millions in taxpayer funds to a multinational-owned company.

Also sitting with the pair was Liberal Senate leader, Eric Abetz, and Liberal veteran Philip Ruddock.

Mr Abbott had told Parliament on Tuesday that Mr Furnival had resigned a fortnight ago because he had been ''dilatory'' in his requirement to divest himself of shares in the company.

But Senator Nash said Mr Furnival ''complied with all the requirements to ensure there was no real or perceived conflict of interest. He resigned because - given this issue was creating a degree of media interest, was causing a distraction for the government, was also having other impacts - he felt it appropriate to offer me his resignation,'' she said.

The different accounts by Senator Nash and Mr Abbott prompted the opposition to ask Mr Abbott whether he or the senator had misled Parliament. Mr Abbott deflected the detail and said both he and his minister were correct.

Senator Nash also said she had done nothing wrong despite the Prime Minister's office advising that it was the responsibility of ministers to ensure there was no conflict of interest among their staff. Her assertions also appeared at odds with her previous statement to the Senate on February 11 that her then chief of staff had no links ''whatsoever'' to the firm Australian Public Affairs.

Meanwhile, the ABC has reported that the Food and Grocery Council, which has opposed the food rating system site, contacted the Senator about it the day it went live. The site was pulled down the same day.

Chief executive Gary Dawson told the ABC that the council expressed a view on the day the site went live that it believed it was ''premature'', but said he did not ask for it to be pulled down.

In a fiery session of the Senate estimates committee, the embattled minister revealed she had known Mr Furnival for years and was well aware of his ownership stake in the lobbying firm and links to the snackfood industry.

Australian Public Affairs had undertaken significant lobbying work on behalf of Cadbury, a company known to be hostile to an initiative using a star system to rate the healthiness of snackfoods.

She said her mind had been turning to his separation from the company - a separation which she claimed had been promised by Mr Furnival but not achieved.

The opposition has demanded to know what led to Mr Furnival's employment by the Abbott government, and what discussions took place between Senator Nash's office and that of the Prime Minister.

''I am not commenting on any discussions I had with the Prime Minister or the Prime Minister's office,'' she said.

For his part, Mr Abbott characterised the controversy as not even a ''zephyr in a thimble''. While the minister refused to answer questions about whether she was asked to resign, Mr Abbott eventually said, ''I've had no such conversation with her.''

Labor continually accused her of misleading the Senate.

The question of Mr Furnival's wrongdoing or otherwise was not the only one in which the minister was contradicted by others in the government. Government officials have contradicted statements by her on Wednesday that Mr Furnival's company only listed junk food companies as clients on its lobbying register entry because of delays in removing them.

Mr Furnival worked in Senator Nash's office for about five months while the lobbying firm he co-owned with his wife was listed as representing soft drink and confectionery companies, but the Department of Prime Minister and Cabinet has confirmed it takes at most two days to update the register.

Senator Nash also refused to answer questions about whether Mr Furnival's company, Australian Public Affairs, had continued to represent junk food industry clients while he worked in her office. Instead, she relied on statements from Mr Furnival's wife, Australian Public Affairs co-owner Tracy Cain, that the company had agreed not to lobby her, Health Minister Peter Dutton or the Health Department.

Under questioning from Labor's John Faulkner she said she had given her explanation for the delay ''in good faith''. ''… my advice was there was a period of time before the companies could be removed,'' she said. ''From recollection, and I can't be sure, I think it was my former chief of staff [who told me that].''

Since Fairfax exposed that Mr Furnival was co-owner, with his wife, of Australian Public Affairs, it has updated its entry on the lobbyists register to remove its food industry clients. Up until two days ago it also listed Ms Cain as its sole owner, but this has now been removed and replaced with other company names.

Or Holden....lucky the upgrades and like for air travel will continue though...

Commenter

Horus

Location

Sydney

Date and time

February 27, 2014, 8:10AM

or Holden or Toyota, what a travesty that those workers were thrown to the dogs because of thier lack of networking skills

Commenter

havasay

Date and time

February 27, 2014, 8:50AM

Or Qantas

Commenter

MST

Date and time

February 27, 2014, 9:04AM

Exactly! Remember they way they pursued everyone with a hint if suspicion when in opposition. Nash knowingly lied to parliament when the said Furnival had no contact with his previous lobbying firm. She knew full well at the time he had not. The fact she ten came out and said he signed a mythical document shows she knew at the time. Lying to parliament is a sackable offence and she has demonstrably lied, yet Abbott won't sack her. Another piece of Westminster tradition/convention this lying government is trashing!

Commenter

Pollyho

Date and time

February 27, 2014, 9:28AM

Abbott is going for a WIN-WIN. (a) Wipe out the 'food rating' web-site, and contribute to increasing obesity, diabetes, heart disease etc. for Australians(b) destroy Medicare, so that more profits go to private insurance, drug and other medical industries.

I'm impressed Tony. We're open for business, but what about the lives of Australians.

Commenter

jack

Date and time

February 27, 2014, 9:43AM

jack, you forgot to mention that Christopher Pyne just introduced WorkChoices Mark 3 into parliament today. In Howard government tradition he's also saying that it's good for workers, the opposite of what it actually is. Be very afraid.

Commenter

Tone

Location

Melbourne

Date and time

February 27, 2014, 9:57AM

This is clear evidence that this government represents the interests of big business over and above any concerns it has for the health of the Australian people. Obviously this is clear grounds for the Australian people as this govts employers to sack them.

27 Feb
Fiona Nash admits drug and alcohol resource library run by a body she cut funding to was not being offered by any other organisation, despite citing duplication as justification for her decision.

27 Feb
Suspension of disbelief is an oft-used tool in national politics. Which is why no one flinched in question time on Tuesday as Labor branded a Medicare co-payment, floated by federal Health Minister Peter Dutton to contain costs, as ''the proposed GP tax''.

27 Feb
Embattled Assistant Health Minister Fiona Nash has failed to meet with major public health bodies central to her portfolio, despite taking significant decisions including the removal of a healthy food rating website.